Hungary Economic Sentiment November 2016

Hungary: Economic sentiment improves November

November 23, 2016

The GKI economic sentiment indicator edged up from October’s nearly three-year low of minus 4.5 points to minus 2.2 points in November. November’s print reflects an improvement in business and consumer confidence and marks Hungary's highest reading in four months.

Business sentiment rose from 1.0 points in October to 2.8 points in November. Sentiment improved across the board except for businesses in the trade sector. Conversely, confidence in the construction sector surged to an over one-year high.

Consumer confidence improved from October’s minus 20.3 points to minus 16.5 points. The rise came on the back of consumers’ more upbeat views on their own financial position and saving capacity for the next 12 months.

FocusEconomics panelists expect private consumption to expand 4.2% in 2016, which is up 0.1 percentage points from last month’s projection. For 2017, the panel expects private consumption to grow 3.4%, which is up 0.1 percentage points from last month’s projection. Panelists expect fixed investment to decrease 7.2% in 2016, which is down 0.2 percentage points from last month’s estimate. In 2017, the panel sees investment expanding 4.2%, which is up 0.6 percentage points from last month’s forecast.

According to revised data released by the Statistical Institute (KSH) on 11 August, industrial output rose a working-day adjusted 6.5% year-on-year in June, which was a slight acceleration from May’s 6.2% expansion.

According to revised data released by the Statistical Institute (KSH) on 12 July, industrial output in May rose a working-day adjusted 6.2%, which marked a considerable improvement from April’s 2.5% expansion.